Update on IRA Gifts

The extension of provisions in the Pension Protection Act of 2006 that allow those over 70½ to make direct transfers of up to $100,000 from traditional and Roth IRAs to qualified charities is currently scheduled to expire on December 31. Unless Congress acts to extend or expand this provision, nonprofit organizations will have only a few months left to promote IRA gifts with this special incentive.

Many donors have already taken advantage of this opportunity. In its annual report released in June 2009, Giving USA estimates between $600 million and $1.2 billion in IRA transfers to charity were made in 2008.

Remind the newcomers

Those organizations interested in receiving IRA gifts should consider encouraging the appropriate donors to make such gifts before the end of the year. Among the best prospects for IRA gifts are those who have turned 70½ since 2006, those over 70½ who have made relatively larger gifts (perhaps $500 or more) in the past, and those who have made a previous IRA gift.

To get the word out, consider sending donors “The Charitable IRA,” a six-panel brochure designed to inform donors of this opportunity. In addition to an overview of the special temporary incentive, the brochure includes a section entitled “Could You Benefit?” that provides donors with representative examples of IRA gifts.

To view this brochure or place an order, visit www.sharpenet.com/pubs.

The publisher of Give & Take is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Give & Take may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details.

About Sharpe

Sharpe Group delivers training, consulting and a complete package of donor communication support offerings, including print and digital communications, to charities and nonprofits throughout the United States.